Energy consumers still need to practise debt management
Energy consumers still need to practise debt management
Thursday 19th March 2009
The UK's six largest utility companies have agreed to reduce their bills following calls from the government, but new research from uSwitch.com shows that homeowners are still being left out of pocket.
Npower became the last of the 'big six' providers to succumb to the price cuts this week when it announced that electricity bills will be reduced by eight per cent at the end of March, although its gas prices are not expected to change.
Last month, British Gas unveiled a ten per cent decrease in gas charges, while Scottish and Southern, Scottish Power, EDF Energy and E.ON have also announced cost reductions.
According to uSwitch.com, these cuts will take 4.3 per cent off the typical household energy bill, but utility prices rose on average by 42 per cent last year.
This means that the average household utility bill is set to fall from £1,293 to £1,237 - still considerably higher than January 2008's level of £912.
Ann Robinson, director of consumer policy at uSwitch.com, commented: "To cash-strapped consumers, this 4.3 per cent or £56 dip in energy prices will seem like a drop in the ocean, especially when compared with last year's 42 per cent or £381 price hike.
"Those who were relying on price cuts to bring their energy bills down to a more manageable level will be particularly disappointed."
A separate survey from uSwitch.com recently found that 6.5 million UK households are in debt to their energy suppliers.
News article brought to you by Debt1 - UK debt management specialists.
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